The Google Nexus One Android smartphone was seen as both a success and a bit of a disaster. As a piece of hardware it was great, managing to combine a fast chip, great screen, and Google’s Android OS. As a distribution network consisting of online only, sales were limited and Google eventually canned the phone other than to offer it as a development handset.

We all thought that was the end of the Nexus line of smartphones, but rumors are circulating that a Nexus Two is set to be announced on November 8. This time HTC will not be involved as Google had turned to Samsung for hardware duties. In fact, it will be a Samsung event where the new phone is unveiled.

The Nexus Two, as it will be called, is expected to run Android 2.3 (Gingerbread). We also hope that Google is going the more traditional route of offering the phone through a range of different outlets including direct online and through retail stores.

The source for this rumor is “multiple, trusted sources” Android and Me has spoken to. We’ll know just how trusted and well-informed they are in just under two weeks.

I think it’s a good idea for Google to carry on with the Nexus line of phones as long as it’s a hardware/software combination that shows off the best of what Android has to offer. I think the Nexus One did that, and Samsung could do the same creating a premiere phone carrying the Nexus Two name.

The Nexus line of phones is Google’s opportunity to present a clear competitor to the iPhone. While there are many Android handsets out there, it’s easy to be overwhelmed with choice, or it takes time to figure out which one is best for your needs. The iPhone is marketed as a phone that does everything well, Google should use the Nexus name to offer the same for Android.

This is also an opportunity for Google to show it can work with a hardware manufacturer to create something better than iPhone. It’s a perfect time to do it due to the issues iPhone 4 is having with Antennagate at the moment and the introduction of a new Android version. Could this actually turn out to be a great Christmas for Google with an iPhone-beater on the market?